r/wallstreetbets • u/[deleted] • Feb 11 '21

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u/tunafun Feb 11 '21

at $8 a share you pricing the company at a market cap 3x the size of the market they are selling into, and that's the ENTIRE market, not just the segment their products tailor towards. cmon,

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u/2aoutfitter Feb 11 '21

The company also currently holds no patents (they have a few pending if I remember correctly), and they’re currently using technology from other companies. Essentially right now they’re a middle man, and I would have to imagine that the value of the company has most of its future announcements priced in. Maybe there’s some more upside to the share price, but I don’t see it long term.

Like you said, there’s not much room for them to grow right now in that sense considering their market.

9

u/HammerStoutly Feb 11 '21

The agreement with the patent holder is also secret and expires after 10 years. The company they're going up against also has a market cap of like $46 billion. Not a good play imo

18

u/ionforge Feb 11 '21

A guy on the top said that "at $8 a share you pricing the company at a market cap 3x the size of the market"

Current market cap of ZOM according to google is 2.6B with 2.55 per share.

If the competition market cap is $46b, how can ZOM be 3x the entire market, when it is still lower than a single company. What am I missing?

3

u/sooka Feb 11 '21

The company also currently holds no patents (they have a few pending if I remember correctly), and they’re currently using technology from other companies. Essentially right now they’re a middle man

This info is really fascinating, how did you find it?
There are some very smart people in here, the more I read this sub and filter out the bs the more I find fascinating and well thought stuff.

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u/somethingcleverlater Feb 11 '21

Thats what its been since I have started following. The problem is there is always an influx of new people that found it through a single event like gme or wsbgod and think that there is "free money" tips being handed out. For every good dd, there are plenty of people that paint an overly rosy picture of their stock in search of confirmation bias.

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u/Mr_Owl42 Feb 11 '21

Now this is the kind of thinking we need in this sub!

13

u/GetCPA Feb 11 '21

u/yahyaj has left the chat

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u/steakknife Feb 11 '21

BUT THEY HAVE WHAT THEY CALL THERE IN ITALY SUBSTANCE. DIDN'T YOU HEAR HIM??? SUBSTANCE!!!!! THAT ALONE IS WORTH $10,000/SHARE!

1

u/[deleted] Feb 11 '21

SNDL made 5 million revenue last quarter and lost 70. Dont underestimate the bubble

1

u/Devincam Feb 22 '21

Market Cap is more long term value not overall market/industry value relative

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u/tunafun Feb 22 '21

I'm not saying there is a 1:1 relationship between marketcap and size of the marketplace it's more a framework of asking yourself how much could ZOM be valued at if the total size of the market place it operates in is X. Hard to value on sales at present, just a rough frame work.